At the 28th meeting of the Project Office, two significant issues for businesses and citizens were discussed. The first concerns the timelines for the introduction of royalties on solid minerals, and the second — the possible exemption from individual income tax (IIT) when writing off problematic loans. Below, we analyze what was discussed and what it may affect.
What happened
As a result of the meeting, it was decided to postpone the introduction of royalties on solid minerals to 2029. This means that the new payment for the industry will not come into effect within the previously expected timelines, and companies will have additional time to prepare.
Separately, the meeting addressed the issue of exemption from IIT when writing off problematic loans. This refers to situations where a bank or other organization forgives part or all of the borrower's debt: as a general rule, such debt forgiveness may be considered income for the individual, and thus subject to taxation. The discussion is aimed at eliminating or mitigating this tax burden for citizens who find themselves in a difficult financial situation.
Who is affected
The postponement of royalties primarily affects enterprises in the mining and metallurgical complex and subsoil users working with solid minerals. For them, not only the rates of the future payment are important, but also the planning horizon itself — it affects investment and financial models.
The issue of exemption from IIT when writing off loans concerns individual borrowers, as well as banks and organizations that write off bad debts. For citizens, the key point is whether the forgiven amount will be considered taxable income. For creditors, clarity in the accounting of such transactions is important.
What this means in practice
The discussion at the Project Office is a stage of developing solutions, not final regulations. Therefore, the outcomes of the meeting should be viewed as a guideline for the direction of state policy, rather than as already effective rules.
For subsoil users, the postponement of the introduction of royalties to 2029 provides time to adjust long-term plans; however, the final parameters of the payment — rates, base, calculation procedure — are determined by regulatory acts that need to be monitored separately.
For borrowers and creditors, the issue of IIT when writing off debt is still under consideration. Until the relevant norms are enshrined in legislation, the current taxation procedure for forgiven debt remains in effect. Therefore, when writing off significant debts, it makes sense to clarify the tax consequences in advance.
What to do now
- Subsoil users — incorporate the postponement into financial and investment planning, but continue to monitor the projects of regulatory acts regarding royalties.
- Borrowers — upon receiving a notification of debt forgiveness, clarify with the creditor and tax consultant whether taxable income arises and in what manner.
- Banks and organizations — track changes in the rules for accounting and taxation of written-off debts to properly document such transactions.
- Accountants and financiers — keep an eye on official publications, as the outcomes of the meeting may transform into specific norms.
Timelines
The only specific timeline mentioned at the meeting is the postponement of the introduction of royalties on solid minerals to 2029. Regarding the exemption from IIT when writing off problematic loans, specific effective dates have not yet been established: the decision is under consideration, and the final timelines will depend on the adoption of the relevant regulatory acts.
Frequently asked questions
When is the introduction of royalties on solid minerals planned? — Following the 28th meeting of the Project Office, the introduction has been postponed to 2029.
Is the forgiven loan debt currently taxed? — As a general rule, the written-off debt may be considered income for the individual; the issue of exemption from IIT in such cases is still under consideration, so the current procedure remains in effect until new norms are adopted.
Who will be affected by the exemption from IIT when writing off loans? — Primarily individual borrowers whose problematic debts are being written off, as well as credit organizations conducting such write-offs.
Are the outcomes of the meeting already law? — No. The decisions of the Project Office reflect the direction of work, and final rules are enshrined in separate regulatory acts that need to be monitored.
What should businesses do until final norms appear? — Continue to operate under the current rules, incorporate potential changes into planning, and monitor official publications.